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Bilbo Baggins of Bag End announces that he will be celebrating his eleventy-first birthday with a party which greatly excites the Hobbits of Hobbiton. Bilbo is rich and described as very peculiar, and had been a wonder in the Shire for his disappearance and unexpected return. The riches in which he brought along with him is regarded as a local legend and it is believed that the tunnels of Bag End is full of treasures.

Bilbo had no close friends, not until his cousins show up. His favorite among them being Frodo. Bilbo was ninety-nine years old when he adopted Frodo as his heir and brought him to live in Bag End. They coincidentally shared the same birthday, September 22nd, and thus they usually celebrated their birthdays together.